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The case describes operations at a skiwear design and merchandising company and its supply partner. Introduces production planning for short-life-cycle products with uncertain demand and allows students to analyze a reduced version of the company's production planning problem. In addition, it provides details about information and material flows that allow students to make recommendations for operational improvements, including comparisons between sourcing products in Hong Kong and China.

learning objective:

Teaches students how to match supply with demand for products with high demand uncertainty and a globally dispersed supply chain.

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Barilla SpA, an Italian manufacturer that sells to its retailers largely through third-party distributors, experienced widely fluctuating demand patterns from its distributors during the late 1980s. This case describes a proposal to address the problem by implementing a continuous replenishment program, under which the responsibility for determining shipment quantities to the distributors would shift from the distributors to Barilla. Describes support and resistance within Barilla's different functional areas and within the distributors Barilla approached with the proposal.

learning objective:

Allows students to analyze how a company can effectively implement a continuous replenishment system both to reduce channel costs (in this case, inventory and transportation costs incurred by Barilla as well as inventory costs incurred by the distributors) and to improve service levels (defined in this case as the percent of retailers' orders filled from distributors' inventory).

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Faced with an unprecedented number and variety of products on the market, managers are finding it more difficult to predict demand and plan production and orders accordingly. As a result, inaccurate forecasts are increasing and, along with them, the costs of those errors. A new approach to the entire forecasting, planning, and production process, accurate response entails first figuring out what forecasters can and cannot predict well. Then supply chains must be made fast and flexible so that managers can postpone decisions about their most unpredictable items until they have some market signals--like early-season sales results--to help correctly match supply with demand. Accurate response enables companies to use the power of flexible manufacturing and shorter cycle time much more effectively.

learning objective:

To see how companies can more correctly match supply to demand by postponing decisions about products with unpredictable demand until they receive signals of demand from the market.

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Inventory strategy can be a key driver of a firm's success or failure. Conversely, an inappropriate inventory strategy can erode customer service and can quickly deplete cash, especially for startups or other cash-starved firms. Because of the important strategic and tactical roles played by inventory within a business, it is important to understand the fundamentals of inventory management. This Reading begins by defining key terms and concepts. It then explores how to determine an inventory model that is appropriate to each business situation. Determining a model depends on finding answers to a pair of related questions: Can inventory be replenished within a defined selling period? If it can, a new question arises: What is the replenishment trigger? A "single-period model" applies to products with a limited useful life that cannot be carried over for sale in a subsequent period and a "multi-period model" applies to products that can be carried over for sale in a subsequent period.

learning objective:

Understand important terms and concepts related to inventory management. Understand the trade-offs between customer service, operational performance, and inventory-related costs. Learn how to choose an inventory model appropriate to a particular business or product.

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The student is starting his or her own business, baking make-to-order cookies. Basic times of each operation are laid out and the student is asked to determine the consequences for the operating system. Serves as an exercise and review of concepts such as capacity, bottlenecks, and throughput times. Students should be able to make several useful suggestions for improving the system.

learning objective:

To introduce or reinforce process analysis concepts in an entrepreneurial setting.

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Describes how Amazon's distribution system evolved from the company's inception. In 2003, Amazon Europe must decide how to reconfigure its distribution network in light of expected growth, products proliferation, and geographical expansion in Europe. Examines how characteristics of suppliers and customers differ across the markets Amazon serves in Europe. The protagonist must consider the degree of centralization appropriate for the European network, where inventory should be held, what fulfillment models should be used, and how to manage risks of supply disruption.

learning objective:

To analyze and understand the logical underpinnings of Amazon's distribution strategy in the United States and how best practices from the U.S. distribution system were adapted and transferred to Europe. Given that suppliers, markets, work practices, transportation systems, and customer service expectations differ across Europe, students must look at how to reconfigure Amazon's European distribution network.

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Describes the organization and operations of the Handleman Co., an intermediary in the music industry that buys recorded music and resells it to mass retailers such as Wal-Mart. The company provides distribution, inventory management, retail merchandising, and category management to its retail customers. It differentiates itself by keeping track of trends in the music industry and ensuring that the trends in music popularity translate to the appropriate assortments in each retail store. Recounts the changes that Handleman has made in organizational structure, processes, and system to support its business. Describes the challenges facing the president of the entertainment division in light of increasing product proliferation, price pressure, the need for growth, and the advent of online music.

learning objective:

To examine the role of an intermediary in an industry with high demand and uncertainty; to examine how Handleman adds value, even to a firm as large as Wal-Mart; and to provide an in-depth understanding of the roles of individuals, organizations, processes, and systems for gathering and processing information.

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NEW! The Regression Section is available as an alternative to the complete course. (See Supplemental Materials below.) Please note: Faculty requesting the Teaching Note for this course should be aware that they will receive two download links - the first link is restricted/unavailable, but the second link will download the appropriate document. We apologize for the inconvenience.

Quantitative Methods is an introduction to using statistical methods to solve business problems. The course teaches statistics from the management perspective and places special emphasis on developing the skills and instincts needed to make good decisions and become a more effective manager. The course is set in Hawaii at a fictional resort hotel. Students act as consultants hired to develop statistical models to aid the management team in making decisions for running the hotel. Students use sampling and estimation techniques to determine guest satisfaction levels and they analyze the risks and returns in investing in a new business venture for the hotel. Course topics are presented in a highly interactive format with narrated animations and self-correcting exercises. Microsoft Excel worksheets are included to assist students as they work towards mastering the subject matter. The course includes pre- and post-assessments.

Student progress and test scores can be viewed online or downloaded to Excel format. Seat time is 20 to 50 hours, depending on the student's experience with the material.

learning objective:

To understand how to analyze quantitative information and make better business decisions.

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